Should I Remortgage With the Same Lender?

In this guide we’re looking at the pros and cons of remortgaging with the same lender to help you decide whether to stay or leave.

Is it easier to remortgage with the same lender?

Yes, it is! When remortgaging with the same lender, this is classed as a product transfer. From an administrative point of view, this is easier. As the lender already knows you and your circumstances, you won’t have to jump through all the same hoops.

Eligibility and affordability checks and property valuations won’t be necessary. You won’t need to instruct a conveyancer either. This means you can get your remortgage finalised far more quickly. Plus, you won’t have to worry about organising all the administration.

This all sounds good from a time-saving perspective. However, is sticking with the same lender the better option financially?

It could be.

It all depends on what your current provider is willing to offer. You won’t be charged the early repayment fee, and you can bypass the solicitor fees, so there’s certainly money to be saved there. However, looking at the open market could save you money in the long run.

When to choose a different lender?

If a different lender can offer a more favourable or affordable mortgage rate, or even more flexible repayment terms, these are all good reasons to switch to a new lender.

It can all depend on the reasoning behind your remortgage as well. If you’re looking to make home improvements, for instance, is your lender offering a loan that will sufficiently cover your expenses?

Pros and cons of remortgaging with the same lender:

Pros

• Time-saving option
• Don’t need a conveyancer
• Avoid early repayment charge

Cons

• Limited mortgage options – You could miss out on a better remortgage plan by not shopping around.

Speak to expert mortgage brokers in Peterborough to find out whether you’re better off remortgaging with the same lender or a different one. We’ll take all the guesswork out of your decision and make sure your remortgage is aligned with your long-term goals. As Whole of Market brokers, we’re not limited with our choice of mortgage products.

Should you decide to switch lenders, we’ll make the changeover as hassle-free as possible.

*You may have to pay an early repayment charge to your existing lender if you remortgage.